Islamabad, Feb 9: The Federal Board of Revenue (FBR) has introduced a significant policy shift to accelerate the digital transformation of Pakistan’s economy by mandating debit and credit card payments for businesses. This measure, in line with Pakistan’s agreements with the International Monetary Fund (IMF), is designed to improve tax collection and enhance financial transparency.
In the initial phase, tier-one retailers and large-scale enterprises are required to install point-of-sale (POS) systems that directly integrate with the FBR’s centralized database. Additionally, to strengthen compliance, authorities will monitor business transactions through CCTV surveillance.
Economic analysts have largely welcomed this transition towards digital payments. Economist Dr. Khaqan Najeeb emphasized that this shift aligns Pakistan with the global trend of cashless economies, promoting financial efficiency and transparency.
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However, some experts caution that the initiative must be implemented carefully. Economist Dr. Sajid Amin noted that while digital documentation is essential, it should not be perceived as a tool solely for taxation. “If businesses view this step as an aggressive tax expansion measure, there will be resistance,” he warned.
Despite the potential benefits, challenges remain in implementing digital payments nationwide. Taxation expert Dr. Ikram-ul-Haq suggested that the government should first modernize its internal financial processes. “Expecting businesses to digitize when government departments still rely on outdated bookkeeping methods is unrealistic,” he argued.
Moreover, concerns about financial accessibility in rural areas persist. Economic analyst Dr. Khalid Walid pointed out that Pakistan still has a relatively low penetration of debit and credit cards. He proposed leveraging microfinance banks, which have a strong presence in underserved regions, to facilitate wider adoption of digital payments.
Under the new regulations, all business transactions will be recorded in the FBR’s system, generating real-time reports on daily, weekly, and monthly revenues. Furthermore, electronic invoices will be archived for six years, ensuring accountability. Any attempt to manipulate financial records will result in legal consequences.
As Pakistan moves towards a more digitized economy, the success of this policy will depend on its effective implementation and the government’s ability to address the concerns of businesses and industry experts. If executed properly, this initiative could significantly enhance revenue collection, reduce tax evasion, and drive economic progress.
